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Smart Key for Cars Market: An Insight On the Important Factors and Trends Influencing the Market

Smart keys are keys that contain microchips and are used to unlock vehicles without having to physically insert them in the vehicles lock. Smart keys are generally provided in all the premium vehicles segment and is continuously penetrating down the line, subsequently it is provided in most of the mid-range sedans and SUVs. Smart keys for cars generally work on the rechargeable battery and also contains the conventional key inside it, which can be used in situations when the battery gets discharged. Smart keys are also used to activate the push button ignition system in the vehicles, which is very useful in starting the vehicles in high-traffic situations.

Demand for the smart key is rising due to the increasing demand for automatic and remote control devices in society. Increasing disposable income and improved living standard has propelled the demand for luxury, which has increased the demand for smart keys for cars. Smart keys can be utilized to unlock the vehicles from a certain distance. Along with the keyless entry, smart keys offer several additional features to customers such as the vehicle can be cranked or started before entering in the vehicle by the smart key, and the occupant does not need to roll up the windows and lock the doors, as this is done automatically when the occupant walks out of the vehicle along with the smart key.

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Smart key enhances the security of the vehicle and triggers an alarm if any forced entry is attempted in the vehicle, which is one of the major factor that is boosting the demand for smart key for cars. However, its high cost can be a restraining factor for the smart key market for cars. For instance, if the key is lost or stolen, it is necessary to replace the complete system, which can be a major restraining factor for the smart key market for cars.

The smart key market for cars can be segmented based on sales channel, vehicle type, and region.

In terms of sales channel, the smart key market for cars can be segregated into two categories. Original equipment manufacturer (OEM) is expected to be a leading segment due to its major demand for the premium segment, which comes preinstalled with the feature and has very less chances of any kind of failure. The OEM segment is expected to expand during the forecast period owing to the increasing production of the vehicles and entailment of the feature in some of the standard vehicles segment.

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Based on vehicle type, the smart key market for cars can be segmented into three segments, out of which, the sedans segment is expected to hold a major share of the smart key market due to the presence of a high number of sedans as compared to other segments. Sedans are mostly preferred for city rides and the increasing population in cities, as compared to the rural areas, is likely to boost the demand for sedans. This, in turn, is boosting the sedan segment of the smart key market for cars.

In terms of region, the smart key market for cars can be primarily segmented into five key regions, among which Asia Pacific is expected to be a leading market due to the presence of major manufacturers in the region and the presence of a large number of manufacturing facilities concentrated in China, India, and Japan. Asia Pacific is also a rapidly expanding market due investments of major manufacturers in the region. Under the “Make in India” program some of the major manufacturers are expected to invest in the India, which is projected to fuel the smart key market for cars.

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Key players operating in the smart key market for cars include Robert Bosch GmbH, EZ Telematics Co., Ltd., ARCO Lock & Security ENTERN LLC, Continental AG, HELLA GmbH & Co. KGaA, and Silca. Robert Bosch GmbH and Continental AG are the major manufacturers and they are expected to expand during the forecast period and develop new technologies for the smart key for cars, owing to the high investment in research and development activities by both companies.

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